I recently listened to The Pivot podcast where Odell Beckham Jr. mentioned that a $100 million, five-year contract is not enough to build generational wealth. That statement sparked a question in my mind:
How can someone earning $20 million per year live a luxury lifestyle in Los Angeles and still build true generational wealth?
If you earn an extremely high income, it’s easy to fall into lifestyle creep: bigger houses, nicer cars, and unnecessary luxury spending. But what happens if you flip the script? What if, instead of letting income dictate lifestyle, you use your income strategically to build long-term wealth?
This breakdown shows how someone earning $20M per year, paying $10M in taxes, living on $1M, and investing $9M annually can realistically build generational wealth that compounds into billions without risky investments or unrealistic returns.
Post-Tax Income: $10M Per Year
This model assumes a post-tax income of $10 million from salary, equity, or business earnings. Instead of letting spending rise endlessly, the individual caps lifestyle expenses at $1 million per year, which is more than enough for a luxury lifestyle in Los Angeles or anywhere in the world.
Lifestyle: Living on $1M Per Year
$1M per year is an elite lifestyle. But the key principle is this:
Spending is capped. Income is not.
Housing, cars, travel, and entertainment all fit within the $1M budget.
No lifestyle inflation. No impulsive purchases. No ego-driven spending.
Investment Strategy: $9M Per Year Into a Low-Cost Index Fund
The remaining $9 million per year is invested into a broad, low-cost index fund. Using a conservative 7% average annual return, we can project how the money grows over time.
This is a simple, reliable strategy favored by many long-term wealth builders.
50-Year Projection: How Fast Does $9M Per Year Grow?
Step 1 — Five Years of Contributions
Investing $9M per year for five years (equivalent to $750,000 per month) at a 7% return grows to:
➡️ $52 million
Step 2 — Stop Contributing, Let It Grow for 30 Years
If no deposits are made after year 5 and the $52M is left untouched for 30 years at 7%, it grows to:
➡️ $396 million
Step 3 — Let It Grow Another 20 Years
If it remains untouched for a total of 55 years from the initial deposit:
➡️ ~$1.5 BILLION
Yes, you read that correctly:
Odell Beckham Jr. could theoretically become a billionaire less than 55 years after the first deposit even with only five years of contributions.
That is the definition of generational wealth.
Accelerated Scenario: Continuing the $9M Annual Investments
If the high earner continues investing $9M per year, the account crosses $1 billion in:
➡️ 33 years from the first deposit
No crypto.
No private equity.
No chasing trends.
Just consistent investing.
Net Worth Breakdown After 33 Years (If Contributions Continue)
- Total invested: $297,000,000
- Compounding growth: ~$773,400,000
- Total net worth: ~$1.1 billion
More than 75% of billionaire-level net worth comes from compounding. Not contributions.
Why This Wealth-Building Strategy Works
1. Lifestyle is fixed, not income-dependent
Most high earners increase spending as their income rises. This model breaks that cycle completely.
2. Massive capital is deployed consistently
$9M per year invested, not spent, creates unstoppable financial momentum.
3. Compounding accelerates exponentially
The final decade often produces nearly half of total accumulated wealth.
4. Index funds reduce risk and emotional mistakes
This strategy removes the guesswork and prevents destructive market-timing behavior.
Key Takeaway
Becoming a billionaire doesn’t require luck, genius, or insider access.
It requires:
- High income
- A fixed lifestyle
- Relentless investing
- Time
- Emotional discipline
This is the formula the wealthy rarely talk about because it’s simple but it is not easy.
Final Thoughts
If you have the income, this is the blueprint.
If you don’t, the principle still holds:
Cap your lifestyle.
Maximize your investment rate.
Let compounding build your future.
